Since the beginning of the year the US index gained almost 13.0% but last week remained flat with a minor gain of 0.3% in addition the US index continues in a bullish phase since mid-May.
Last week the index initially fell but some enough support near the previous week low to trim all of its losses and managed to close near the high of the week, however closed within the previous week range, which suggests being slightly on the bullish side of neutral.
The weekly candles have been narrowing down signs that the upward momentum maybe losing its ground.
The stochastic is showing an extreme overbought market and is displaying lack of momentum.
Dow Jones Industrial Average is holding above the 10-week moving average that should provide a good dynamic support for next week.
Expecting a downward move to a Fibonacci retracement at 21,896 (scenario 1) on a break below the previous week low at 22,173 however a break above the 2017 high at 22,386 may set in motion another bullish run to a Fibonacci extension at 22,659 (scenario 2).